Top 10 Biotech Stocks To Own Right Now

Arihant Capital’s research report on Suven Life Sciences

Suven Life Sciences (SLS) is a compelling play on the recovery being witnessed in global R&D spending, as reflected in strong fund raising by biotech start-ups as well as a fast-growing research pipeline across multiple stages of clinical trials. SLS has witnessed strong growth in revenue of 22.6% CAGR, whereas operating profit has shown growth of 42.4% CAGR over FY11 to FY18. With improved operating efficiency, we expect the EBITDA margin to expand at a higher rate than the gross margin due to lower than average R&D expense of 10% in FY19-20E compared to average 17% during FY16-18. R&D spending on consolidated level is expected to stand at ~Rs100-120 crore annually for FY19-20E. SLS enjoys a strong margin profile with EBITDA margin of 32%+ in CRAMS segment. We expect return ratios to remain in the range of 15-17%, as growth normalizes.

Outlook

We initiate coverage on the stock & recommend ‘Accumulate’ rating with target price of Rs 325 per share. Our target price is based on 25x FY20E EPS which gives a potential upside of 16%.

Top 10 Biotech Stocks To Own Right Now: Biogen Idec Inc(BIIB)

Advisors’ Opinion:

  • [By Chris Lange]

    The S&P 500 stock posting the largest daily percentage loss ahead of the close Wednesday was Biogen Inc. (NASDAQ: BIIB) which traded down about 6% at 297.99. The stock’s 52-week range is $244.28 to $370.67. Volume was about 5 million compared to the daily average volume of roughly 1 million.

  • [By Todd Campbell]

    The acquisition of AveXis resulted in an $80 million milestone payment to Regenxbio in Q1 and an additional $100 million payment in June. If AVXS-101 wins an OK, Regenxbio will receive sales royalties in the mid single to low double digits, which could add up to hundreds of millions of dollars annually. For perspective, Biogen’s (NASDAQ:BIIB) Spinraza became the only FDA-approved treatment for SMA in late 2016, and its sales are already tracking at an annualized pace of over $1.2 billion, even though only 40% of patients see an improvement on it.

  • [By Benzinga News Desk]

    A distillery in a small Spanish town has claimed it invented the original Coca-Cola (NYSE: KO) recipe and now wants recognition: Link

    ECONOMIC DATA
    Initial Jobless Claims For Week Ended May 25 221K vs 225K Economist Estimate, Down From 234K In Prior Week
    Personal Income Apr. Up 0.3%, Personal Spending Up 0.6%
    The Chicago PMI for May is schedule for release at 9:45 a.m. ET.
    The pending home sales index for April will be released at 10:00 a.m. ET.
    The Energy Information Administration’s weekly report on natural gas stocks in underground storage is schedule for release at 10:30 a.m. ET.
    The Energy Information Administration’s weekly report on petroleum inventories will be released at 11:00 a.m. ET.
    Federal Reserve Bank of Atlanta President Raphael Bostic is set to speak at 12:30 p.m. ET.
    Fed Governor Lael Brainard will speak at 1:00 p.m. ET.
    Data on money supply for the recent week will be released at 4:30 p.m. ET.
    Federal Reserve Bank of Dallas President Robert Kaplan is set to speak at 8:30 p.m. ET.
    ANALYST RATINGS
    Canaccord upgrades Biogen (NASDAQ: BIIB) from Hold to Buy
    Morgan Stanley upgrades Corning (NYSE: GLW) from Equal-Weight to Overweight
    Morgan Stanley downgrades Micron (NASDAQ: MU) from Overweight to Equal-Weight
    Cantor downgrades HealthEquity (NASDAQ: HQY) from Overweight to Neutral

    This is a tool used by the Benzinga News Desk each trading day — it's a look at everything happening in the market, in five minutes. To get the full version of this note every morning, click here.

Top 10 Biotech Stocks To Own Right Now: Alnylam Pharmaceuticals Inc.(ALNY)

Advisors’ Opinion:

  • [By Keith Speights]

    Speaking of competition, Ionis should have its hands full battling rivals for Tegsedi assuming the drug wins approval. Alnylam (NASDAQ:ALNY) anticipates winning FDA approval for its hATTR drug patisiran within a few weeks. Because the FDA delayed its decision on Tegsedi, Alnylam appears to be in position to reach the market first. In addition to its first-mover advantage, patisiran appears to have an edge over Tegsedi in efficacy and safety based on clinical data for the two drugs. 

  • [By Keith Speights]

    It’s not exactly David vs. Goliath. However, Bellicum Pharmaceuticals (NASDAQ:BLCM) and Alnylam Pharmaceuticals (NASDAQ:ALNY) are definitely in different leagues right now. Both are clinical-stage biotechs, but Bellicum’s market cap is less than $350 million while Alnylam’s market cap is close to $10 billion.

  • [By Keith Speights]

    I wrote three months ago that I viewed Alnylam Pharmaceuticals (NASDAQ:ALNY) stock as a pretty good pick — but with a couple of qualifications. First, I didn’t think that the biotech would generate returns in 2018 nearly as great as it did last year. Second, I thought that there were even better stocks to buy than Alnylam.

  • [By Shane Hupp]

    Alnylam Pharmaceuticals (NASDAQ:ALNY) had its price target lowered by equities research analysts at Morgan Stanley from $107.00 to $99.00 in a report released on Friday. The firm presently has an “equal weight” rating on the biopharmaceutical company’s stock. Morgan Stanley’s price objective would indicate a potential upside of 3.97% from the stock’s current price.

  • [By Sean Williams, Chuck Saletta, and Brian Feroldi]

    So, which biotech stocks should you consider buying in June? That’s a question we posed to three of our healthcare-focused investors. Interestingly enough, mid-cap biotech stocks are the clear flavor of the month. If biotech is on your radar in June, our investors suggest you consider Ionis Pharmaceuticals (NASDAQ:IONS), Spark Therapeutics (NASDAQ:ONCE), and Alnylam Pharmaceuticals (NASDAQ:ALNY).

  • [By Joseph Griffin]

    BidaskClub lowered shares of Alnylam Pharmaceuticals (NASDAQ:ALNY) from a strong-buy rating to a buy rating in a research report released on Monday.

Top 10 Biotech Stocks To Own Right Now: ArQule Inc.(ARQL)

Advisors’ Opinion:

  • [By Stephan Byrd]

    Get a free copy of the Zacks research report on ArQule (ARQL)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Ethan Ryder]

    Get a free copy of the Zacks research report on ArQule (ARQL)

    For more information about research offerings from Zacks Investment Research, visit Zacks.com

  • [By Logan Wallace]

    BidaskClub upgraded shares of ArQule (NASDAQ:ARQL) from a hold rating to a buy rating in a report released on Saturday.

    A number of other research firms have also issued reports on ARQL. Roth Capital upped their price target on ArQule from $5.00 to $6.00 and gave the company a buy rating in a research report on Tuesday, April 17th. Leerink Swann upgraded ArQule from a market perform rating to an outperform rating in a research report on Thursday, April 5th. Zacks Investment Research lowered ArQule from a buy rating to a hold rating in a research report on Wednesday, April 4th. ValuEngine upgraded ArQule from a hold rating to a buy rating in a research report on Wednesday, May 2nd. Finally, B. Riley set a $4.00 price target on ArQule and gave the company a buy rating in a research report on Monday, March 26th. Seven analysts have rated the stock with a buy rating, The stock currently has an average rating of Buy and an average target price of $4.69.

Top 10 Biotech Stocks To Own Right Now: Amgen Inc.(AMGN)

Advisors’ Opinion:

  • [By Joseph Griffin]

    Field & Main Bank grew its stake in shares of Amgen (NASDAQ:AMGN) by 9.1% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 4,153 shares of the medical research company’s stock after buying an additional 345 shares during the quarter. Field & Main Bank’s holdings in Amgen were worth $708,000 at the end of the most recent quarter.

  • [By Cory Renauer]

    With Johnson & Johnson picking up the tab for ARO-HPV, Arrowhead can direct more resources toward candidates it still owns outright. Although Arrowhead has several preclinical stage candidates that could begin their first human studies soon, just two other candidates are in their first clinical trials right now, a wholly owned candidate for the treatment alpha-1 antitrypsin deficiency (AATD), and a cardiology drug partnered with Amgen (NASDAQ:AMGN).  

  • [By Logan Wallace]

    Eqis Capital Management Inc. grew its position in Amgen, Inc. (NASDAQ:AMGN) by 3.3% in the second quarter, according to its most recent filing with the SEC. The fund owned 42,769 shares of the medical research company’s stock after acquiring an additional 1,361 shares during the period. Amgen accounts for approximately 0.5% of Eqis Capital Management Inc.’s investment portfolio, making the stock its 23rd biggest position. Eqis Capital Management Inc.’s holdings in Amgen were worth $7,895,000 at the end of the most recent reporting period.

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